Mile High Home Group – Welcome to Denver

Earnest money in Colorado acts as a good-faith deposit from buyers—typically 1-3% of purchase price ($6,000-$18,000 on a $600,000 home)—held in escrow to show commitment, refundable during the option period but credited toward closing if the deal proceeds.

How Earnest Money Works in Practice

After 15+ years in Denver real estate and thousands of transactions, I’ve seen earnest money secure offers in competitive markets like Highlands Ranch villages. Buyer wires or checks it within 1-3 days of acceptance, into a neutral escrow account—Colorado’s 10-day option period (buyer’s right to inspect/back out for a fee, $100-$500) protects it fully refundable if issues arise. Post-option, risks mount: low appraisal forfeits only if renegotiated; financing failure usually returns it unless buyer drags feet. At closing, it applies to down payment. Littleton bungalows often see 2% ($13,000 on $650K); Denver condos push 3% in hot pockets.

Sellers rarely keep it without breach.

Local Nuances and Market Role

In Douglas County for Highlands Ranch real estate ($700K ranches), HOAs demand extra docs during option, stretching timelines—earnest holds firm through reviews ($150-$400 fees later). Littleton Public Schools zones negotiate higher deposits for speed near top elementaries. Core Denver real estate bids climb to 5% in frenzies, but Colorado law caps seller retention at actual damages. Market cycles favor bigger earnest (2-3%) in low-inventory springs for leverage; balanced phases ease to 1%. Compared to cash-heavy California, Colorado keeps it buyer-friendly with strong contingencies.

Non-refundable only post-waiver.

Practical Advice for Buyers and Sellers

Price Range	Typical Earnest	Option Fee Pairing
$500K-$600K	1-2% ($5K-$12K)	$200
$600K-$800K	2-3% ($12K-$24K)	$300-$500

Buyers, offer 1-2% with 10-day option—pre-approve loans, inspect promptly; negotiate return clauses for appraisals.

Sellers, require 2% minimum verified—counter low offers up, disclose HOA timelines for smooth holds.

My hands-on, concierge-level service crafts earnest terms block-by-block, weighs school/HOA fits through market cycles, builds pricing from local sales, and negotiates relentlessly for protected deposits. Clients are long-term relationships and friends, not transactions—integrity, honesty, transparency, and relentless work ethic safeguard your stake.

If earnest money questions hit your Denver real estate search—Littleton, Highlands Ranch details—reach out anytime. I’m here for a no-pressure conversation and honest guidance tailored to the Colorado housing market.